A North Dakota promissory note is a legally binding document that outlines the conditions under which a borrower agrees to repay a loan to a lender, either with or without collateral. It specifies the loan amount, interest rate, parties’ contact information, and the repayment schedule.
Additionally, it includes consequences for late payments or default. This template facilitates structured, timely repayment and serves as a legal record, enforceable in court once signed by all parties involved.
Laws: Promissory notes fall under Chapter 47-14: Loans of Money.
Statute of Limitations: Six years (§41-03-18).
By Type
Usury Laws and Interest Rates
The promissory note must adhere to North Dakota’s usury laws as outlined in Chapter 47-14:
- With contract (§ 47-14-09): Maximum interest rate is 6-month US Treasury Bills + 5.5%, the maximum allowable contract interest rate shall not be less than 7%. Exceptions include:
- Loans over $35,000.
- Transactions under $10,000 with licensed pawnbrokers.
- Loans to trusts, corporations (foreign/domestic), LLCs, cooperative corporations, or associations.
- Loans by regulated lending institutions.
- Loans to partnerships, LLCs, or associations filing tax returns.
- Without contract (§ 47-14-05): 6%.
- For monetary judgments (§ 28-20-34): Prime rate + 3% if no specified amount in the contract, or the amount specified in the contract or note.
